India's Adani Power Q1 profit more than halves as fuel costs bite

A technician repairs power supply lines at a power plant of Adani Power at Mundra Port in the western Indian state of Gujarat·Reuters
Reuters
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BENGALURU (Reuters) - Indian thermal power producer Adani Power reported a 55.3% drop in first-quarter profit on Wednesday, as higher fuel costs ate into heatwave-driven demand surge.

The Adani Group company reported consolidated net profit of 39.13 billion rupees ($467.37 mln) in the April-June quarter, from 87.59 billion rupees a year earlier.

The company's expenses rose 13.5% to 105.68 billion rupees, led by a 16.8% jump in fuel costs due to higher crude oil prices. Fuel accounts for 70% of Adani Total's overall expense bill.

Power demand in India surged during the quarter due to an unusually intense summer that extended beyond the typical March-May period into June.

The company, whose power plants are spread across seven states in the country, said its June-quarter consolidated power sales volume rose about 38% to 24.1 billion units.

Adani Power's revenue rose 36% to 149.56 billion rupees.

Earlier this month, rival JSW Energy reported a 80% jump in quarterly profit on strong power demand.

($1 = 83.7234 Indian rupees)

(Reporting by Yagnoseni Das in Bengaluru; Editing by Varun H K)